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About LinkBacksLiquidity and Credit Crunch in Financial Markets is Back to Summer Peaks, Only Much Worse and More Dangerous
RGE Monitor
It's declining and will continue to decline
It's declining, but will rebound
It will be average, then rebound
We don't know yet. We have to wait and see
Liquidity and Credit Crunch in Financial Markets is Back to Summer Peaks, Only Much Worse and More Dangerous
RGE Monitor
I luv your avi eso.
Here is a very generic article on the current S & P and Dow. But....it's relevant because the markets have hit the 10% mark, which is the usual signal of a correction. All of the gains of this year have been erased. What will happen? Who knows, if anything.
Stocks close down on credit woes
Dow falls 10 percent from its mid-October closing high
Mon., Nov. 26, 2007
NEW YORK - Wall Street sold off sharply Monday as concerns about a weakening credit market wiped out investors' enthusiasm about strong retails sales over the holiday weekend. The Dow Jones industrial average fell nearly 240 points.
The Dow's decline from its mid-October closing high is now 10.03 percent, putting the blue chip index past the 10 percent threshold that signifies a correction.
The swoon comes as investors were unnerved by another series of announcements that pointed to continuing problems in the credit markets, the result of home loan debt going bad under the weight of a faltering housing market.
Link:
Wall Street walloped - Stocks & economy - MSNBC.com
Last edited by esoteric1; 28th November 2007 at 16:47. Reason: Automerged Doublepost
It's not just mortgage debt instruments that will create problems:
Charleston, SC Latest Business News: We're heading toward financial chaos
Bye Bye Miss American Sly,
Let the Levi be the Levi, that will see the Yank economy die!
And good Old Boys, will protect Combination Fried Rice,
But this will be the throw of the dice,
The time to be nice, is now ICE!
Bite off more than you can chew, then chew like buggery! (Peter Brock 05)
yup
from:Not only have risky investments been deliberately supported by government policy, less-risky paths have been infected by overspill from the risk-taking activities; worse yet, my very own government is treating me as a sucker. I mean openly, which is kind of new.
Bailout of risky investments will have unsettling consequences
http://custom.marketwatch.com/custom...0-94BFBE5481A8}
You might enjoy this.
http://www.dailyreckoning.com/RSS/DR120707sec1.html
"It's good to be a Googler of economics when you faked your degree."
-A mate
Ebony and Ivory, live together in perfect harmony, side by side on my piano, keyboard, oh Lord, why don't we?
yes I did, thanks mugwump. I get their daily emails, but somehow I missed that.Originally Posted by mugwump
-----
This gets to the root of the problems...banksters and their funny money:
American Chronicle: Moral Hazard on the Rise
Last edited by esoteric1; 13th December 2007 at 20:11. Reason: Automerged Doublepost
Slowing GDP growth + rising inflation = potential problems in 2008. We'll see....
Entire & Link: http://www.nytimes.com/2007/12/15/bu...=1&oref=sloginAdding to the List of Worries, Signs That Inflation Is Bubbling Up
MICHAEL M. GRYNBAUM
Published: December 15, 2007
Economists and central bankers have worried for months that soaring food and energy costs could lead to higher inflation, but investors had shrugged off those concerns, preferring to focus on the slowdown in growth.
“In the Fed’s mind, inflation never really left the picture,” the chief economist at PNC Financial, Stuart G. Hoffman, said. “I think in the market’s mind, it was off the radar screen.”
Higher prices, however, have begun to bubble up at the consumer and producer levels, government reports showed this week, complicating the policy calculus of the Federal Reserve as it tries to bolster the struggling economy.
Stock markets fell yesterday as investors once again focused on inflation. The Dow Jones industrial average spent the day in the red, eventually dropping 178.11 points, or 1.32 percent, to close at 13,339.85. The Standard & Poor’s 500-stock index lost 1.37 percent, or 20.46 points, ending the week at 1,467.95.
The Labor Department said on Friday that the Consumer Price Index rose 0.8 percent as consumers paid more for retail goods in November, the biggest monthly increase since Hurricane Katrina in 2005. The core index, a closely watched measure that excludes volatile food and energy costs, is up 2.3 percent since November a year ago, more than analysts had expected. They took that as a sign price pressures have started to affect the broader economy.
And costs may only go up. Wholesale prices, which are passed on to consumers, rose last month at their fastest rate in 34 years. Import prices recorded their biggest monthly gain since 1990.
if you base your 'investment' decisions on govt reports(especially those on inflation and employment), you're a fool!
not you specifically Bene, anyone.
In the short run - let's say the next three months, I anticipate the US dollar to continue to go down. I'd move dollars to Thai baht and buy some gold, rather than keep dollars. This is my gut feeling, not some sophisticated analysis.
“Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way for himself if society is sweeping towards destruction. . . . What is needed to stop the trend towards socialism and despotism is common sense and moral courage.” Ludwig von Mises
right now I think it's on a bounce to the top of the declining trendline(somewhere around 80 to 81) then will start its next leg down.
Agree. Both UE and Inflation numbers put forth to the public by the government are skewed.
One example is Unemployment:
There are several categories of Unemployment: U2 U3 U4 U5 U6, and more.
The goverment press releases use the most favorable category of unemployment (U2, I think)
It excludes people that are "looking for work," and and people that have stopped looking, as well as other measures. The real unemployment is usually higher that what the gov reports.
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well what God wants them to do because
I notice it always coincides with
their own desires." --Susan B. Anthony
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Amount of unpaid credit card bills is rising
Experts link increase that could threaten economy to housing crisis
Sun., Dec. 23, 2007
SAN FRANCISCO - Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come.
An Associated Press analysis of financial data from the country’s largest card issuers also found that the greatest rise was among accounts more than 90 days in arrears.
Experts say these signs of the deterioration of finances of many households are partly a byproduct of the subprime mortgage crisis and could spell more trouble ahead for an already sputtering economy.
Entire: Amount of unpaid credit card bills is rising - U.S. business - MSNBC.com
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"I distrust those people who know so
well what God wants them to do because
I notice it always coincides with
their own desires." --Susan B. Anthony
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